More Engagements with the Shipbuilding and Ship Repair Industry Provide the DOST with More Opportunities to Determine Appropriate Science, Technology, and Innovation Interventions
By: Zalda R. Gayahan
‘Everything is about timetable,’ was the sentiment shared by Mr. Daniel L. Bautista, President of Northbay Construction Services Corporation, during a consultative meeting with players of the local shipbuilding and ship repair industry (SBSR) in Navotas.
Participants, along with the industry study team of the DOST-Metals Industry Research and Development Center (DOST-MIRDC), staff from the MARINA and DOST-National Capital Region, during the consultative meeting with the shipbuilding and ship repair industry held in Navotas on June 15, 2023.
The consultative meeting was held on June 15, 2023. The meeting is part of the industry study being conducted by the Department of Science and Technology – Metals Industry Research and Development Center (DOST-MIRDC). Through the study, the Center aims to present an overview and assessment of the local SBSR industry and determine the most appropriate science, technology, and innovation-based interventions.
‘Gusto namin malaman kung ano ang pangangailangan ng industriya – kaya po kami naririto,’ explains Ms. Lina B. Afable, Chief of the DOST-MIRDC’s Technology Diffusion Division, when she discussed with the participants the purpose of the industry study team’s visit to Navotas.
Ms. Lina B. Afable explains to the consultative meeting participants the purpose of the activity.
According to the 2021 data from the Maritime Industry Authority (MARINA), there is a total of 35 shipyards in the National Capital Region (NCR): five are Class B, and 30 are Class C. The meeting was a gathering of shipyards in Navotas to discuss strengths and challenges.
A typical business day for a shipyard in Navotas.
In Mr. Bautista’s statement about timetables, he referred to the sad reality that all steel materials that shipyards use are imported. While local shipbuilders can deliver in six months, China delivers in three months. Before the shipyard can even secure a job order, the client has already decided to deal with a shipyard in China. A lost opportunity.
The industry study team raised the issue of the local SBSR industry being weak in terms of ship design skills, which was an issue mentioned by other shipyards in Cebu and Zamboanga. Navotas shipyards had a different insight about this.
Mr. Arturo Balahadia (standing second from left); Mr. Daniel Bautista (standing fourth from right)
The participants revealed that Korea is another competitor in the business. According to the shipyard officials, there is very little market. Private companies go to Korea for their shipbuilding and ship repair requirements. ‘Karamihan sa mga shipyards, hindi nag-iinvest sa software at hardware kasi hindi developed ang market,’ remarked Mr. Arturo Balahadia, Vice President, Josefa Slipways, Inc. ‘Madaling bumili ng software. Saan mo gagamitin kung walang oorder sa yo?’ he continues. Industry players do not engage in the necessary investments. This is a cause for more lost opportunities.
The challenges the SBSR industry players do not end there.
The participants were one in saying that naval architects are going out of the country. They also brought out the fact that universities offering naval architecture courses do not use advanced naval architecture software. To this end, the shipyards suggested to the industry study team to encourage the universities to use modern software to develop the skills the industry needs. When the academe starts producing people skilled in naval architecture, SBSR companies will then be encouraged to invest in software and hardware.
Another issue raised during the meeting is about the monopoly in the supplies of engines and spare parts. With this, the local industry cannot compete with counterpart SBSR industry players from countries such as China, Korea, and Japan.
Clearly, the country needs to create an enabling environment for the local SBSR industry. Being the fourth top country in terms of shipbuilding and ship repair capabilities, the industry holds a huge potential in boosting the Philippine economy.
To address the issues raised by the shipyards, it appears that interventions are needed in the following areas: establishment of a testing center, particularly non-destructive testing (NDT); assistance in securing the necessary certifications; making appropriate tax incentives available; raising awareness on market potential; and training.
The consultative meeting with Navotas shipyards put forward some new concerns that need to be addressed. The DOST-MIRDC’s engagement with the SBSR industry continues as the industry study team prepares to conduct site visits and another consultative meeting with shipyards in Regions IVA, III, VI, and XII in the month of July.
The DOST-MIRDC is in close coordination with the MARINA and DOST Regional Offices for this initiative.
